When the hospitality industry had to close, draft beer was a slow seller. In the meantime, production is increasing again – also thanks to the summer weather, the beer gardens are full. But there are other concerns.
For the brewers in Germany, sales of draft beer are on the up again after a deep trough. Full beer gardens and restaurant terraces as well as well-attended folk and rifle festivals boost beer production.
“People rush to every event, people want to get out,” said the boss of the Veltins brewery, Michael Huber. “And above all, people stay much longer at the events, and this means that consumption during the event is higher than we expected.” One notices this “incredible desire to catch up”. Almost every rifle festival records higher sales than before the corona pandemic.
«Staff shortage, staff shortage, staff shortage»
“People like to go to the beer garden again, to the festivals that take place,” said Benedikt Meier, spokesman for the Association of Private Breweries in Munich. In some places even more would actually be possible. “In many places, a problem is that there is a lack of staff in the catering industry. It starts in the kitchen and ends with the service.» The head of the Altbier brewery Bolten, Michael Hollmann, also found this on the Lower Rhine: “Lack of staff, lack of staff, lack of staff – in the catering trade but also in the breweries.” Many employees would have looked for another job during the Corona crisis and many also had better working hours than in the catering trade.
“Sure, draft beer sales are coming back. In 2021 there were restrictions until May. However, there are still quantities missing compared to before,” said the editor of the industry magazine “Inside”, Niklas Other. Due to a lockdown that was extended several times at the beginning of last year, draft beer that was not for sale became an ever greater problem for brewers. In order to save it from the gully, bakers made beer bread. After a break of months, many brewers did not fill beer in kegs again until May 2021.
Veltins estimates that the German beer market only grew by around 3 to 4 percent in the first half of 2022 compared to the weak prior-year period. Despite the large number of guests, the current June could therefore be around 10 percent below the extremely good month of the previous year. Bottled beer is no longer in such high demand as it was in the first year of the pandemic, when many pubs and restaurants had to close. “Trade has suffered a bit because gastronomy has increased,” said Huber. “Bottled beer isn’t doing so well, and retailers are also complaining that sales aren’t that great,” emphasized Hollmann. Bottled beer sales had already fallen in 2021.
«Deep concern about a blackout»
Many beer producers are now increasingly worried about the gas supply – also for their important suppliers such as the glass manufacturers. “The industry is deeply concerned about a blackout,” said the managing director of the German Brewers’ Association, Holger Eichele. According to the association, about two thirds of German breweries are dependent on gas.
“The brewing industry has a sword of Damocles: It’s a gas embargo,” said Veltins manager Huber. If that happens, “many breweries will have serious problems.” In addition, the gas supply is also a main issue for the brewers’ important upstream suppliers. “We need around 50 to 60 million new bottles a year. If something breaks down, the supply is totally interrupted, »said Huber with a view to the glass manufacturers.
A lack of glue or a lack of labels could also bring production to a standstill. That is why Veltins bought goods ahead of time for 30 million euros that would otherwise have been ordered at short notice and rented warehouses for these quantities. The brewery in the Hochsauerland district is prepared for a possible switch from gas to oil and has tank capacity for five weeks’ oil needs. Consumers are also likely to feel the effects of the increased energy and raw material costs. Experts had already assumed in the spring that there would be increases in the price of beer in the trade – announced long before and not as a reaction to more recent developments.
“A lot of cancellations of shooting festivals”
Pandemic effects can also be felt throughout the industry. “Many people still avoid gatherings, and there is also the lack of staff,” added industry expert Other. A wholesaler from the Ruhr area calculated for himself that his gastronomy customers are on average 10 percent less open than before. In addition, there are many new corona infections right now: “We feel that the danger is still great. We’re getting a lot of cancellations from shooting festivals because 50 percent of those involved had Corona at two festivals, and of course that makes you anxious.”
The Oettinger private brewery announced two weeks ago that it would be closing production and logistics at its location in Gotha, Thuringia, at the end of 2022. The Swabian family company justified the step with sales declines in Germany. Oettinger also shuts down unused reusable systems elsewhere.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
